CLOs: “You Look Better At Closing Time”

Published on
December 4th, 2019
Duration
48 minutes


CLOs: “You Look Better At Closing Time”

The Interview ·
Featuring Peter Boockvar and Danielle DiMartino Booth

Published on: December 4th, 2019 • Duration: 48 minutes

Are ultra-low interest rates putting monetary “beer goggles” on financial markets? Danielle DiMartino Booth of Quill Intelligence sits down with Peter Boockvar, CIO of Bleakley Advisory Group, to discuss the systemic risks to the global financial system. They deconstruct the growing challenges facing central banks. Boockvar examines the explosion of collateralized-loan-obligations (CLOs), predicts a grim future for companies with extreme debt/EBITDA ratios, and argues that the Fed’s liquidity injections have created a cycle of financial addiction to low interest rates. Filmed in New York on November 20th, 2019.

Comments

Transcript

  • CD
    Cheryl D.
    10 December 2019 @ 19:55
    Excellent interview!! Really enjoyed it!!!!!!! Thank-you!!
  • SS
    Sam S.
    8 December 2019 @ 14:31
    Dynamic interview by both these top notch talented experts! Money has to go somewhere, good times or bad. Love to hear from Peter, Danielle or any of our RV audience, where's the safe or profit making "place to go"? Vast majority of people in general have no idea what the REPO market even is. I understand GOLD and the insurance aspects, store of value, but Peter's numerous comments "greatest financial bubble of all time" is pretty spooky and demands the question---where do we go with our portfolio's to survive?
  • UJ
    Ulf J.
    7 December 2019 @ 14:33
    great interview and easy to listen to, first time I listen to someone who almost understands inflation policy it is not for the people it is a tax so the one percent can get richer.
  • JA
    Jordan A.
    7 December 2019 @ 01:31
    Danielle is a great interviewer.
  • WA
    Wissam A.
    6 December 2019 @ 09:20
    Real Vision it would be great to get few people from the Federal Reserve to get their view and counter arguments to what Peter and Danielle are projecting. I have noticed that you have interviewed quite a few people that gives a negative picture of the Federal Reserve and it is only fair to get also their point of view and how they think about these matters.
    • MW
      Max W. | Real Vision
      6 December 2019 @ 18:24
      Hi Wissam, Although he was at the BOE, this interview with Mervyn King serves as a nice counterbalance from another former central bank insider: https://www.realvision.com/tv/shows/the-larry-mcdonald-series/videos/the-truth-about-central-bank-policy
  • MB
    Magnus B.
    6 December 2019 @ 08:46
    Peter B was a real joy to listen to. What a brilliant analysis!
  • AK
    Ado K.
    6 December 2019 @ 00:21
    Great take on how negative rates represent a cost that someone has to eat, astonishing how central bankers seem perplexed by the fact that negative rates are hurting bank profitability. Very good interview, enjoyed it a lot.
  • AS
    Arthur S.
    5 December 2019 @ 23:00
    Very informative Interview. It's interesting....I like Danielle a lot and her thesis but I found her much more measured and convincing as an Interviewer than as a speaker or interviewee. She listened very well and asked good questions. Peter was excellent.
  • PL
    Phil L.
    5 December 2019 @ 22:36
    Don't look at corporate delinquency rates ;) https://fred.stlouisfed.org/graph/fredgraph.png?g=pFAg https://fred.stlouisfed.org/graph/fredgraph.png?g=pFAH https://fred.stlouisfed.org/graph/fredgraph.png?g=pFAF
  • SH
    Scott H.
    5 December 2019 @ 20:38
    Brilliant! Thank you for such amazing content.
  • FC
    FRED C.
    5 December 2019 @ 19:49
    major props to peter for his trading call on mo........up almost 15%
  • PK
    Patrik K.
    5 December 2019 @ 18:48
    Really appreciated this one. Thanks!
  • ag
    anthony g.
    5 December 2019 @ 18:45
    well done.
  • WM
    William M.
    5 December 2019 @ 17:41
    Outstanding!
  • BG
    Bernd G.
    5 December 2019 @ 14:24
    the ecb cant Bike nor lower Rates. the banks or/and southern Europe get in the (bigger) Problems
  • PJ
    Peter J.
    5 December 2019 @ 10:03
    Excellent, definitely need a rewatch, lots of content to think through
  • RS
    Ruben S.
    5 December 2019 @ 09:09
    question to administrators pls: at 5:54 min before the end, was ther a cut in the recording? i m asking cose its quit a critical moment in his explanations and would require to be put in full. thanks
    • DS
      David S.
      8 December 2019 @ 15:45
      Check the transcript to see if it will help. DLS
  • T~
    Tshort63 ~.
    5 December 2019 @ 06:10
    Dynamic Duo
  • AH
    Andrew H.
    4 December 2019 @ 20:52
    I can agree that a rise in LT interest rates would burst some bubbles. I just question if central planners would be able to squash the rise. i.e. operation twist, curve control, etc... Keep buying stocks.... Nothing to see here.
  • DH
    Daniel H.
    4 December 2019 @ 18:35
    Great interview! And not even one mention of crypto. Hallelujah!
  • DS
    David S.
    4 December 2019 @ 17:43
    There was and is no solution without major economic pain to Wall Street's mortgage-backed securities fraud of 2008 and its repercussions to this day. Although everyone constantly complains how stupid the CBs are, no one could or can put Humpty Dumpty back together again – buy gold. The policies in Japan did give Japanese corporations time to clean up their balance sheets. In the rest of the world, we just borrowed more and more money to make matters even worse. A Tale of Two Cities. DLS
  • DS
    David S.
    4 December 2019 @ 17:34
    I was in favor of lower corporate income tax rates to make a more level playing field with the corporate income tax rates in other countries. I was surprised when Mr. Boockvar did not mention that as one of the major reasons for corporate profits increasing markedly. The corporate tax cuts did reduce federal tax revenues, thereby creating ever larger deficits that need to be funded by the Treasury. Surprising that the tax cut did not generate a 5% increase in GNP for years as promised. DLS
  • BM
    Beth M.
    4 December 2019 @ 17:04
    I wish they would put certain videos out closer the "actual film date"!...PLEASE
  • CW
    Christopher W.
    4 December 2019 @ 15:44
    Need regular convos between these two. Great rapport and content every time they speak.
  • JJ
    Jimmy J.
    4 December 2019 @ 14:37
    Always look forward to hearing from Danielle. Thanks from TX!
  • CL
    Charles L.
    4 December 2019 @ 14:07
    Simply beautiful interview, in many aspects. One question to throw out there. What do you think happens to currency if long term interest rates rise sharply in an economy which does print its own currency (unlike Italy) ?
    • VR
      Vladimir R.
      5 December 2019 @ 00:39
      Most likely nothing unusual because all the central banks coordinate to avoid any sharp swings in the euro-dollar in particular. Failing that it depends on the current demand what would happen. The dollar would likely go up, but the euro who knows.
    • KS
      Kathleen S.
      8 December 2019 @ 13:58
      Government bankruptcy -- and privitization of all public infrastructure (btw the private equity that buys the infrastructure borrows the money to do it --- it is one big leverage buy out and THEFT of public property by global elite.
  • JH
    Jesse H.
    4 December 2019 @ 14:07
    Probably the best interview I’ve watched on RV all year long, and I watch a lot of them. Superb. Thank you.
    • RZ
      Richard Z.
      4 December 2019 @ 21:44
      I agree
  • DF
    Dominic F.
    4 December 2019 @ 12:27
    Fantastic interview! About ten years ago someone said "One day the market will just reprice interest rates on its own" but I hadn't heard anyone talk about it since, until now. Kool-aid is the real liquidity. This video should be shipped out to schools and universities everywhere. Really clear and well communicated for all to understand. Perhaps even to the economists ;-)
  • TJ
    Terry J.
    4 December 2019 @ 11:32
    Highly informative discussion from two brilliant minds. I learnt so much especially about CLOs! Frightening!!
  • HK
    H K.
    4 December 2019 @ 09:11
    nice - good interview - covered a lot of points
  • RA
    Rohit A.
    4 December 2019 @ 06:17
    Q - The lag between recorded date and published date is quite large, relatively speaking. Compared to other videos/podcasts
    • TB
      Troy B.
      4 December 2019 @ 11:37
      This one's hot off the press Rohit, some are a month and a half old.
    • M.
      Milton .. | Founder
      4 December 2019 @ 12:13
      Trade ideas are released as soon as possible. Today's video was filmed yesterday so the turnaround is amazing. Interviews like this one age well so we aim to have them posted within 30 days.
    • TB
      Troy B.
      4 December 2019 @ 12:58
      Hey Milton, It says above in the description it was filmed 2 weeks ago on Nov 20th, not yesterday. Great interview none the less.
    • DS
      David S.
      4 December 2019 @ 18:06
      Milton is working so hard getting videos out; his answer was a little confusing. The other video today was a Trade Idea and it was published the next day. This video is not a Trade Idea and less time sensitive information - taped on November 20th; published December 3rd per introduction. In order to have several new videos three times a week, it must be very difficult to manage the video flow. Would you be just as happy having eight new videos one week and three next week? Maybe Milton can take a survey. I am happy with either options. DLS
    • AF
      Andre F.
      5 December 2019 @ 07:16
      Dumb question: what does DLS stand for?
    • ZN
      Zar N.
      6 December 2019 @ 00:34
      David seems to be signing his comments that way.
    • RA
      Rohit A.
      6 December 2019 @ 02:21
      Thanks all of you for your comments. I appreciate the effort and quality for sure. But in this environment when everything changes on a daily basis, I dont remember the context of 2 weeks back(my bad). I'd just hope you guys rush through good interviews such as this.